Time and Saving Deposits Higher by 27, 8%

Time and savings deposits of Bosnia and Herzegovina's citizens over the last year have increased by close to KM 500 million, or by 27, 8%. The growth trend of the total deposits is somewhat slower than during previous years, but still, BH citizens who save mark this year's World Savings Day, October 31, with the largest amount of savings and time deposits ever recorded.

The data of the Central Bank of Bosnia and Herzegovina (CBBH) show that the total deposits of citizens in commercial banks of BH on September 30, 2006 amounted to close to KM 3, 8 billion and they are by 25, 1% higher compared to the same period last year out. Of that, close to KM 1, 3 billion or 33, 5% are deposits in local currency and close to KM 2, 5 billion or 66, 5% are foreign currency deposits.

Looking at the time structure of citizens' deposits, on sight deposits, which include gyro and current accounts of citizens, sight deposits - a-vista deposits, special-purpose deposits of citizens and interest on deposits, amount to close to KM 1, 6 billion, or 43, 1% of the total deposits.

Time and savings deposits, which are made of short-term deposits up to one year, long-term deposits with maturity date over one year and special-purpose deposits of citizens, amounted to close to KM 2, 2 billion or 56, 9% at the end of September 2006. Compared to the same period last year, when they amounted to close to KM 1, 7 billion, they have increased by close to KM 500 million.

Although time-savings deposits in local currency, Convertible Mark, have increased and amount to KM 400 million, foreign currency time and savings deposits are still dominant and amount to close to KM 1, 8 billion.

The data shows that savings of Bosnia and Herzegovina's citizens are increasing every year, although this increase is somewhat slower this year, which is logical because of prices increase, so the largest number of citizens is not in the position to save, since they face problems in covering their living expenses. However, savings are the reflection of the situation in the entire country, above all, of the economic underdevelopment and unemployment.

All problems arise from the fact the economy of Bosnia and Herzegovina is underdeveloped, so BH citizens are not in position to save. Therefore the role of the state is to strengthen the economy and provide better standard for its citizens.